GM owes $9M to AK Steel - Business Courier of Cincinnati:

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About $9.1 million is how much the carmaker owes theWest Chester-base d steel manufacturer in tradr debt, according to a list of GM’s 50 larges t unsecured creditors that was included with its initialp bankruptcy court filings was listed as the company’s 33rd largest unsecuredr creditor. The only other Ohio companty on the list was GoodyearTire & Rubbefr Co. in Akron, which is on the hook for almosty $7 million. No Kentucky or Indiana companies were onthe list. Asider from bond debt and employee obligations, whicjh account for GM’s five largest unsecured obligations, the top tradde debt disclosedwas $122 million owed to Starcomj Mediavest Group Inc. of Chicago.
GM has been AK Steel’es biggest customer for years, although the percentagew of total sales it derives from the troubler automotive company has been declininh inrecent years. AK Steel did not disclose how much it sold to GM in 2008 in its latesftannual report, but earlier annual reports disclosedf that shipments to GM accounted for 20 percent of net saleds in 2003, 15 percent in 13 percent in 2005, and less than 10 percent in 2006 and 2007. AK Stee said about 28 percent of its trades receivables outstanding at the end of 2008 were due from businesseds associated withthe U.S. automotive industry, including Generapl Motors, Chrysler and Ford.
Its 2008 annual report also includesd the followingcautionary disclosure: “If any of thess three major domestic automotive companies were to make a bankruptcyy filing, it could lead to similar filingsw by suppliers to the automotive many of whom are customers of the The company thus couldd be adversely impacted not only directlty by the bankruptcy of a majotr domestic automotive manufacturer, but also indirectlyh by the resultant bankruptcies of otherf customers who supply the automotive industry.
The nature of that impacft could be not only a reductio infuture sales, but also a loss associaterd with the potential inabilityu to collect all outstanding accounts That could negatively impacft the company’s financial results and cash flows. The company is monitoring this situatiobn closely and has taken steps to try to mitigatw its exposure to such adverse but because of currenrt market conditions and the volume ofbusinessx involved, it cannot eliminate these risks.
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